Tariffs are making headlines again—but what do they really mean for your supply chain? In this Supply Chain Byte, Lisa Anderson breaks down why tariffs exist, their impact on global trade and what businesses should be doing now to stay ahead. Whether you’re managing sourcing, manufacturing or logistics, understanding tariffs is critical to maintaining a competitive edge. Watch now to learn how to navigate tariffs and protect your supply chain strategy!
When Trump took office, he immediately focused on the border and drug war. Thus, he used tariffs as a negotiating tool to address the border and drugs with China (produces the precursors for drugs), Mexico and Canada (produces the drugs). He announced potential tariffs of 25% for Mexico and Canada, and 10% to China. Mexico and China were able to avert tariffs with a month extension by partnering to resolve the border issues while China’s tariffs went into effect. Trump has announced an additional 10% tariff on China and plans to move forward with the 25% tariffs unless serious action is taken to address fentanyl.
Steel and aluminum tariffs of 25% also went into effect to prevent dumping and encourage manufacturing. There is a need to increase the U.S. manufacturing base to support critical infrastructure and national security. There are also conversations about reciprocal tariffs potentially going into effect that would equalize trade. If Europe charges 10% tariffs (as they do on cars) and the U.S. charges 2.5%, the U.S. will match Europe. Thus, if Europe reduces the tariffs to 2.5%, the U.S. will maintain 2.5% as well.
If you are interested in reading more on this topic:
All the Hoopla Around Tariffs and What It Means for Supply Chain
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LMA Consulting Group works with manufacturers and distributors on strategy and end-to-end supply chain transformation to maximize the customer experience and enable profitable, scalable, dramatic business growth.